The Russian food industry has demonstrated remarkable growth in recent years, with key developments in production, processing, and retail. In 2024, the industry's turnover in Moscow increased by 10.3% to ₽807.1 billion, marking a record-high performance. This trend reflects the expansion and modernization of food processing capabilities, alongside shifts in consumer preferences favoring convenience and ready-to-eat meals.
Growth in Food Processing and Production
A significant area of expansion within the Russian food industry has been potato processing. The 2023/24 agricultural season saw a 25% increase in potato processing, reaching 1.5 million tons. Key segments included cooked and canned potatoes (588 thousand tons), frozen potatoes (421 thousand tons), and potato chips (93 thousand tons). The production of potato-based products is expected to continue its upward trajectory in 2024/25, despite a decline in total potato harvest.
Beyond potatoes, overall food production in Russia grew by 3.5% in 2024. There was an increase in wheat and wheat-rye flour (1.5%), cereals (0.8%), and confectionery products (3.9%). Cheese production saw a 5.1% rise, reaching 841 thousand tons, whereas butter production decreased slightly by 1.4%.
Surging Demand for Ready-Made Food
The ready-made food sector in Russia has experienced substantial growth, with sales increasing by 28.8% in 2024. The most significant growth occurred in pasta (62.1%), vegetable dishes with meat or fish (50.9%), and soups and broths (43.3%). This shift in consumer preferences reflects a growing demand for convenience and time-saving meal solutions.
Retail channels have also adapted to these changes, with supermarkets leading in sales while hard discounters and minimarkets show the fastest growth. Sales of ready-made food in retail chains increased by 35.6% to ₽1.27 trillion, as more consumers opted for store-prepared meals over home cooking. Major retailers such as Pyaterochka and VkusVill have significantly expanded their offerings in this category.
Investments in Food Production Facilities
The Russian food industry continues to attract significant investments in specialized production facilities. In 2024, a ₽1.8 billion plant for medical nutrition production was established in the Ryazan region, and an amaranth oil processing plant worth ₽1.5 billion was launched in Voronezh. These investments highlight the industry's diversification and commitment to high-value product development.
The Russian food industry is undergoing rapid transformation, driven by increased production, expanded processing capabilities, and evolving consumer trends. The shift toward ready-to-eat meals and the expansion of food retail chains indicate a promising market for B2B businesses looking to engage with Russian food manufacturers, retailers, and suppliers. Continued investment in food processing and innovation will be key to sustaining this growth trajectory.
